During the lease term, the person who lived together with the deceased may continue to lease, but has no right to inherit. The legal basis is Article 234 of the Contract Law of the People's Republic of China. If the lessee dies during the lease period of the house, the person who lived together with the lessee before his death may lease the house in accordance with the original lease contract. The owner of the public housing is the state or the collective. Therefore, after the death of the public housing lessee, the public housing cannot be inherited and divided as the lessee's property, but can be continued to be leased by the cohabitant or other relatives according to law, which is actually the inheritance of the public housing lease right. If the lessee of public housing dies, the lessee shall be determined according to the following provisions:
 （1） If he or she had a permanent residence in the city before his or her death, he or she shall continue to rent the house by the person who has been determined by consensus by the common residents;
 （2） If consensus cannot be reached according to Article 1, the lessor may determine the change of lessee among the co residents in the following sequence:
 1. The spouse of the original lessee;
 2. Children of the original lessee (housing conditions in other places, length of residence in this place, etc.);
 3. The parents of the original lessee;
 4. Others (according to the housing conditions of other places and the length of residence in this place).
 （3） The joint residents who did not have permanent residence in this city before their death shall continue to rent by the candidates determined by other spouses and direct relatives who have permanent residence in this city through consensus;
 （4） If consensus cannot be reached according to Article 3, the lessor shall determine the lessee in the following order:
 1. The spouse of the original lessee;
 2. Children of the original lessee (according to the living conditions elsewhere);
 3. The parents of the original lessee;
 4. Other direct relatives of the original lessee (according to the housing conditions of other places)